tv Cavuto on Business FOX Business November 26, 2017 2:30am-3:00am EST
brick-and-mortar, you need brick-and-mortar to build the factory, up 25% in one year. >> dagen: john? >> it's thanksgiving and you're talking about investing, come on . >> dagen: neil now. >> neil: well is it this or some democrats are now rethinking tax hikes on the rich, hi, everyone i'm neil cavuto and with republicans in washington pushing to take state and local tax deductions away, some democrats in high tax states like new jersey for example, are worried that any hike now will millionaires away. >> after i got elected i said first thing on the agenda is the millionaires tax we got to get it for school funding and then this happens and it's like wait a minute. i got to take a step back and be more pragmatic and think about what's best for the state of new jersey. you know, 1% of the people in the state of new jersey pay about 42% of its tax base and they can leave. >> neil: yeah they can and that
is one of the powerful democrats of new jersey working with the incoming liberal democratic governor, they will have the run of the table here and they're saying maybe go on this so what to make of this is charles payne , charlie gasparino, deirdre b and ben stein and adam lashinsky. what do you make of that? >> charles the newly-elected governor this is a guy who ran on higher taxes and millionaires tax and also making the entire state a sanctuary state. how much is that going to cost people, how many jobs will it cost so maybe this-- >> neil: i had a feeling this guy the senate president was speaking on be half of the governor as well. >> you think so? >> neil: i do. absolutely as did the senate president we're going to go back to that because it made sense he voted for it. >> charles: i hope you're right the fact of the matter is these guys boxed themselves in they've gone past the rubicon if you
will and only thing they know are higher taxes. >> neil: i wonder if that spreads though, the concerned spread and what they're worried about is republicans go through on this measure charlie to get rid of the deduction for state and local taxes high tax states will be affected and they will rethink their higher taxes. >> you sound like you just read the wall street journal editorial page or listen to cavuto on business. >> neil: maybe cavuto on business first and then read the wall street. >> sorry i worked at the wall street journal for many years. >> neil: absolutely. >> it slipped out of my mouth but you know, he sounded like it was a breath of fresh air in the democratic party. i will say this and i agree with charles. the democratic party in these states like new york, new jersey , california, are so locked into their welfare state. they have massive unfunded liabilities. they have a lot of stuff they have to keep their certain tax levels where they are or else the state is going to go essentially go into in solvency
so they are screwed so bad if this thing happens because people that can will leave. they cannot stop it. they are leaving already and they can't stop it. >> neil: do you know what's interesting deirdre about it is one of the things is this is one of the things the republicans have been pushing this to remove the deduction and the secret is these states give a lot more to washington than they give back but it will change behavior in these states. this might be the first time they're right. >> it may be the first time they're right but do you see charlie honestly people get up and saying okay my kids are in this school district? i think people just come clean and be angry. >> mass exodus out of new york. >> california and new jersey too i know new york, california businessmen moving to texas. >> neil: but you need a lot of them to do that though. let's say they work on wall street. i mean, the tri-state new york and new jersey have all high tax base. they're not--
>> go to the south. i got family-- >> well not only that but-- >> so many new yorkers in these places that are escaping this. >> neil: i think that deirdre raises a good point. they can't all leave in mass. >> that's the problem those who can't are the ones that will work as hard enough and get taxed enough but so many people. >> i don't agree right away. >> neil: maybe so. all right, adam, you were saying >> well but charles, you're sitting there as the perfect example. you're one of these people. >> i've got the earpiece and i can't go. >> neil: yeah. >> that's my point and you're not alone my friend. you're not alone. i mean nobody likes truly neil nobody likes paying higher taxes >> neil: i think liberals do. i do. i think they actually enjoy it if they can inflict pain. >> [laughter] but the fact is these rich people you're talking about they are just as tethered to this. >> some are, some aren't look at it. there's an exodus out of new
jersey, out of california partly because it's cold. >> no. to states that have less taxes, less taxes. >> but chris christie wanted to do something very simple if he made more than a million it was chris christie, people complained it didn't happen but now i guess-- >> neil: well he reversed that high tax and it got to the 8.97 which was a bargain basement top rating one of the nations highest but ben stein in the end , it's attempting try to tap to get from the rich because the incoming governor said that he certainly isn't going to get it from anyone else so where do you see this going? >> ben: i don't see it going anywhere good and i'm with my friend adam. it's not that easy to move. it's not easy to move at all. i live una very super high tax state, i have a lot of property in the state if i may respectful ly say so. >> neil: but you live in like 28 different states. >> ben: no, and i can't move
because i have to be near the fox studio and i can't go anywhere. i would love to north idaho where there's essentially no tax but i have to be near the fox studio and by the way it is not easy to i think some said that it's not easy to move your children. in modern america children are the dictators and they dictate what we do. >> i agree. i think that you could be very angry about it, but i live in new jersey and i've got kids. i mean they're very needy and they want food, clothing and constantly ask. >> constantly asking for drinks of water. >> neil: but i do say that they get older a lot of people will start rethinking it. >> the bottom line is this is well documented, look at census bureau data and in a place like california-- >> neil: now you're actually making up the data. >> charles: well, it's a lot of children and a lot of immigrants coming in but i'm talking about people's work skills leaving.
there's reports out there already which cities inherit all the people that leave new jersey >> neil: you guys are right about this. the low tax states, you know, what are the ones booming, florida, texas, that isn't accidental. >> even north carolina people move to. >> but there's austin so if you're talking about skilled labor okay already austin is setup so then it's-- >> do you know how easy it is though? >> sometimes charlotte became the banking capitol of america now. >> neil: wall street is thriving >> doesn't matter i can trade from any place. >> neil: i know you can but it's not all being done by computers. >> but a lot of it is. >> neil: i understand all i'm telling you is that no doubt the math favors eventually a lot of people are saying that's it. you get to a certain high rate where you say on top of what they're doing at the federal level and now the tax for obamacare and all of this and now i'm over 50% you're quite right. i think the math-- >> neil, do you imagine what
it's going to be like when a guy or a family of four that makes $300,000 a year in new york cannot deduct the state and local taxes? okay, i get it you're stuck with the kids for a few years but you're out of there as soon as you can. you'll just get crushed, crushed on this. >> but that's not the millionaires tax we're talking about at least in new jersey. >> no, we're talking about what the federal tax code with the changes in it what it's going to do in high tax states-- >> the counter argument to that unfortunately charlie is someone making 70,000 in mississippi is saying why should this person have these benefits at my expense? >> neil: and you're right. adam one of the thins that was interesting in this for, against , or believe the numbers or different sets of numbers one thing that's very clear is this is the first indication of a state at least that is considering changing its plan to tax to its richest residents because of what's being considered in washington which is exactly the argument those in
favor of dumping this deduction had been making. what do you think of that? >> i think that's exactly right. i think this will put pressure on these states to lower their taxes or at least to change the way they're taxing way more. that will happen way more than people leaving. >> alex give me a break. adam, california? california cannot lower. >> neil: it's physics. say that again ben stein? >> ben: a body and rest will tend to remain at rest. a body in motion will tend to remain in motion and most of us modest modestly well to do people are bodies at rest. most of us are not going to move but there is just something sickening about how much money the state of california spends. it's just sickening. >> by the way they can't change. they can't lower their taxes: >> ben: no they can't. >> they're stuck. >> you're right. >> they're screwed adam. california, new york and new jersey if this passes you're screwed.
>> neil: this might be the first opening we shall see. in the meantime millennials are making a move at helping their parents and our economy. charlie gasparino, we'll look forward to that. >> today on forbes on fox inside the beltway the focus is on russia probes outside the beltway it's on holiday shopping the economy, so which one do americans really care about? also former irs employee says her deposition about targeting conservatives should remain sealed forever, but the taxpayer s deserve to know what real
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they may finally be singing yes because home sales are up again last month and get this it turns out a lot of millennials, that's right a lot of these buyers are millennials young adults make up the largest group of new home buyers. charlie gasparino this generation that you have ripped is now on fire. >> listen it's a double-edged sword with the millennials. the ones that go into the military i meet a lot of kids that are really smart and engaged. they do stuff, they don't sit on the couch all the time. >> neil: charlie many in our age bracket sit on the couch so sitting on the couch is hardly the domain. >> well sit on their easy chair? >> neil: stop it. >> whatever they sit on but you know, the ones that go to college a lot of them are snowflakes and financially illiterate and i will say if they're buying houses now the markets hot because this is the most financially illiterate generation i've seen in my life. >> neil: adam you'd agree with that?
>> no, i don't. i mean i have my issues with the generation coming up too but this was inevitable that this was going to happen. the next exciting thing that will happen with millennials is they will pay for getting the news. that will be a really big development. >> neil: someone's jaded. ben stein what do you make of all of this? >> ben: i bought my son a house and he's happily living there. so that made it really really simple and he loves his house and of course he can't be bothered to cut the lawn but otherwise it's great. but i'd like, i have too many houses so the millennials just look me up online if you'd like to buy some of my houses. >> [laughter] >> i'm not a millennial but maybe i'll apply with my family ben stein you'll be hosting. >> ben: well they are the largest group. >> neil: they're also the latest group to get into this market. now to charlie's earlier point it might be a late sign. >> well there's 35% of home buyers 13% of the population.
they are at least the same size if not a little bit bigger than the baby boomers so it's worth paying attention to and another trend that's interesting is they're not going to starter homes or looking to buy a home for like $90,000 and fix it up. they're skewing the prices higher they waited longer and have been at home longer scott average prices-- >> neil: a lot of them are like aided by very wealthy parents like ben right? >> yeah. honestly, the range of prices is 160,000 to 200,000. >> how much are they putting down do we know? >> neil: i'll give you the broad strokes here. i don't have time for details. this is what's happening. >> my guess is they're buying this mainly on margin as most people do but most smart people in my generation would put 20-30 % down. >> neil: how do you know they're not? >> because i've done my research a lot of them don't. >> neil: but you're very anti- young people. charles payne what do you say? >> real estate brokers it's good though. >> but 200,000 and register your sales? >> they want to live in the city
and they want to live in urban areas that's why also if you look at household formation it's mostly condos but we want household formation. that is the ultimate long term economic thing when people get married have children, put down roots that's what they want. >> neil: but they're doing it. >> they are. i applaud it. the bottom end of the millennial s is 20 years old and just wants to invest in the market. he's like don't give me anything for my birthday or christmas. i just want to invest in the market. i think one thing the financial crisis taught us is a house is a part of a financial future is not a necessity that if you are going into massive debt just to buy a house, you're depriving the rest of your financials. >> neil: well certainly, it's giving a lot of people, i think there is a change in the way people look particularly how people look at the value of owning it. >> you're actually smarter to rent. >> although renting in new york city i'd rather own something than rent in new york city. >> but they're growing up.
>> neil: adam? final word on that? >> i'm just saying they're growing up as was to be expected they are getting homes, getting mortgages and spending money they will vote. this is a good thing. >> neil: absolutely. it's a pity we started pointing out the good things after and the result our demo is now moved up to somewhere in the mid 80s. when we come back the department of justice saying it is not okay with at&t and time-warner mega merger, if it ever comes to pass so many here say that's not okay for consumers and future d
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>> i've always felt that that was a deal that's not good for the country. i think your pricing is going to go up i don't think it's a good deal for the country. >> neil: once again making it clear the president saying he's not a fan of the at&t and time-warner deal and now the justice department is suing to block it. charles you say blocking it would be a bad move? >> absolutely. i don't like the anti-trust laws in this country anyway. i believe capitalism competition create a disruption. think about this 10 years ago, at&t was on top of the world and there was a company selling plastic discs all of a sudden they're crushing at&t and crying they have a hundred million consumers so you go out and find a way to get them too. i would think it's a deal of desperation both these companies need. >> neil: well the timing is curious, ben stein, i mean, whatever the b. h. meth is at the moment it's really for the moment right? >> ben: exactly for the moment and by the way, i'm not worried about the anti-trust division. i work for the government and
part of the government that handled anti-trust. i think the lawyers for at&t and time-warner will beat the snot out of them when it comes to court court and the merger will go through. >> neil: with all of the key parts cnn, directv? >> ben: they will figure out some way of dealing with that but this merger will go through. you can not have people with that kind of power and that kind of legal fire power who can't get this thing done. >> neil: the justice department is a long history of trying to turn itself in these mergers but ultimately, they prevail on just the wisdom of the parent. >> and republican judge who was appointed by george w. bush, so it seems as if-- >> neil: during the reagan administration we had the breakup of at&t, so you don't know. >> you don't know but this republican judge the one whose going to hear this was actually replaced for some reason that's not particularly clear to anyone in obama appointee, so i think that's interesting. >> neil: where do you see this going? >> listen, i agree with everybody here.
this is a stupid stupid move on the part of the trump doj and let's be real clear why this is happening. it has no real sort of intellectual or legal basis. it's happening because donald trump, the president, hates cnn and wants to basically screw them over and by the way if the justice department prevails on this, or if the at&t walks away and sets a precedent this will screw time-warner and cnn big time because it will basically limit the number of buyers that will bid on the property. it could help us because guess what? if you can't sell to a distribution like at&t you might have to sell back to us. remember-- >> neil: well do you see that happening adam? i mean, i'm kind of with ben on this, if this deal goes through. >> i agree with the deal will go through the justice department will lose, at&t time-warner will win because there's plenty of competition here so stopping this deal would actually not be good for consumers which is the point of all this. >> but it's so, i just worry
that you get before a court you never know what a judge is going to say. >> neil: that's true. but the president did tweet on all your critical comments, sad. >> ben: [laughter] >> neil: charlie i want to thank deirdre today by the way is ben 's birthday. >> [applause] >> neil: isn't that great? >> happy birthday. >> neil: to celebrate charles and adam bought him some stock
>> happy birthday ben stein. >> ben, since you own so many homes, dr horton, one of the biggest in the country, you'll love it. >> what do you think of that, ben. >> and charles, i will honor and treasure it and keep it until the day i die and pass it onto my granddaughter. >> that's good. >> adam, what do you have for him? >> ben, a great one for you, a vanguard large cap etf, the same holdings as your beloved
spdr's. and that means a $3 saving on a $10,000 investment. >> ben, quick. >> any dollar helps, i'll take it and thank you for thinking of me. >> many, many more years, thank you, ben stein. here is dave. >> thank you very much. david: from russia to the rush on stores, which one do you think matters most to everyday americans? hi, everybody, i'm david asman, welcome to forbes on fox. while washington continues the endless rush of probes inside the beltway, life is going on outside the beltway. a record holiday spending this year and with those tax cuts, goldman sachs now predicting a boom for the economy next year, is that the news that really matters most to americans right now? let's go in focus to find out with steve forbes, rich, mike, elizabeth mcdonald, john tamny and david mercer. steve, doesn't a